Frequently Asked Questions
What is the average electricity rate in the United States?
The US average residential electricity rate is approximately 16-17 cents per kWh as of 2025, but there is wide regional variation. Hawaii averages over 40 cents/kWh while Louisiana and Wyoming are under 10 cents/kWh. Your exact rate appears on your monthly bill as the total charge divided by total kWh used, including all fees and taxes.
What is a kilowatt-hour (kWh)?
A kilowatt-hour is the energy used by a 1,000-watt (1 kW) appliance running for one hour. A 100W light bulb running for 10 hours uses 1 kWh. Your electricity meter measures cumulative kWh consumption. At 16 cents/kWh, running a 100W bulb for 10 hours costs 1.6 cents.
What is time-of-use electricity pricing?
Time-of-use (TOU) pricing charges different rates depending on the time of day. On-peak hours (typically 4-9 PM on weekdays) may cost 25-40 cents/kWh while off-peak (nights and weekends) may cost 7-10 cents/kWh. Running high-wattage appliances like dishwashers, laundry, and EV chargers during off-peak hours can cut electricity bills by 15-30% for TOU customers.
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